Weekly Trading Forecasts for Major Pairs (June 8 – 12, 2015)

Here’s the market outlook for the week:

EURUSD

Dominant Bias: Bullish

The popular Non-Farm Payrolls report and other employment figures coming out of the US and Canada caused significant impact on the markets on June 5, 2015. The figures had positive effects on USD and CAD and therefore other USD pairs and CAD pairs were seriously affected in the near-term (please refer to the closing positions of USD and CAD pairs last week). The effect on the EURUSD, which attempted a bullish break last week, was ultimately negative. However, there remains a bullish outlook on this market unless the support line at 1.1000 is breached to the downside. The effect of the US employment figures has given potential buyers an opportunity to enter the market at better prices, because there could be an upwards bounce. However, a movement below the aforementioned support line could be a beginning of another bearish run.

USDCHF

Dominant Bias: Bearish

The economic figures released on Friday had a positive impact on this pair, but the bearish outlook is still in place. The bearish outlook is now precarious, as price threatens to break the resistance level at 0.9500 to the upside. Should price succeed in doing this, it would close above the resistance level and that could lead to a ‘buy’ signal. A movement below the support level at 0.9300 would result in reinforcement of the existing bearish bias.

GBPUSD

Dominant Bias: Bearish

This is a bear market. Last week, the bulls made a praiseworthy attempt to push price upwards and the price moved above the distribution territory at 1.5400, trying to go towards the distribution territory at 1.5450. But the bullish energy is far outstripped by the selling pressure, which made the bulls to forfeit their gains in the last week. There is a need for Cable to move above the distribution territory at 1.5450 before long trades can make any sense here.

USDJPY

Dominant Bias: Bullish

The USDJPY has moved upwards over by 600 pips since the middle of May 2015. Last week, price first moved sideways as the bears began to challenge the bull’s supremacy, but the fundamental figures that came on Friday were a final blow that broke the bears’ obstinacy. This trading instrument could thus continue trending upwards as long as Yen is weak.

EURJPY

Dominant Bias: Bullish

The EURJPY cross moved upward very strongly last week. A weekly movement of 500 pips is something that is significant enough to maintain a Clean Bullish Confirmation Pattern in the market. Obviously, traders are more benefitted by strong movements when compared to weak movements. The supply zone at 141.00 has been tested. It could be tested again and breached to the upside. Even if this cross would experience some bearish correction later this week or next week, there could be some initial northward attempt.

This forecast is concluded with the quote below:

“If you diversify, control your risk, and go with the trend, it just has to work.” –

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